Problem 7-9 (algorithmic) Question Help A global positioning system (GPS) receiver is purchased for $3,000. The IRS informs your company that the useful (class) life of the system is siix years. The expected market (salvage) value is $350 at the end of year six. a. Use the straight line method to calculate depreciation in year two. b. Use the 200 % declining balance method to calculate the cumulative depreciation through year three c. Use the MACRS method to calculate the cumulative depreciation through year four. d. What is the book value of the GPS receiver at the end of year three when straight line depreciation is used? Click the icon to view the summary of the principal features of GDS under MACRS Click the icon to view the GDS Recovery Rates (r.). a. Using the SL method, the depreciation amount in year two is $ (Round to the nearest dollar.) mic) More Info rket (salvage) value receiver is p calculate dep method to c ulate the cum PS receiver a GDS Recovery Rates (r) for the Six Personal Property Classes Recovery Period (and Property Class) 15-year 20-year 5-year 10-year Year 3-year 7-year mmary of the p 0.0500 0.0375 0.3333 0.2000 0.1429 0.1000 1 OS Recovery R 0.0722 .3200 0.0950 0.4445 0.2449 0.1800 2 0.0668 0.0855 0.1920 0.1440 3 0.1481 0.1749 0.0618 0.0770 reciation amou 0.0741 0.1152 0.1249 0.1152 4 0.0571 0.0693 5 0.1152 0.0893 0.0922 0.0528 0.0737 0.0623 0.0892 0.0576 0.0489 0.0590 0.0893 0.0655 7 0.0452 0.0590 0.0446 0.0655 0.0447 0.0656 0.0591 9 0.0447 0.0590 0.0655 10 0.0446 0.0328 0.0591 11 0.0446 0.0590 12 0.0446 0.0591 13 0.0590 0.0446 14 0.0446 0.0591 15 0.0295 0.0446 16 0.0446 17 wer box and the Done Print Check gorithmic) salvage More Info em (GPS) receive ethod to calculat ng balance metho hod to calculate th of the GPS rec MACRS (GDS) Property Classes and Primary Methods for Calculating Depreciation Deductions Class Life (Useful Life) GDS Property Class and Depreciation Method Special Rules w the summary d Includes some race horses and tractor units for over-the-road use. 3-year, 200% DB with switchover to SL Four years or less ew the GDS Reco Includes cars and light trucks, semiconductor manufacturing equipment, qualified technological equipment, computer-based central office switching equipment, some renewable and biomass power facilities, and research and development property. Includes single-purpose agricultural More than 4 5-year, 200% DB with switchover to SL the depreciation years to less than 10 7-year, 200% DB with switchover to SL 10 years to less than 16 and horticultural structures and railroad track. Includes office furniture and fixtures, and property not assigned to Includes vessels, barges, tugs, and similar water transportation equipment. property class. 16 years to less than 20 10-year, 200% DB with switchover to SL 15-vear 150 % DB with 20 vears to less. Includes sewage treatment plants. he answer box an Print Done